New discount card aims to promote independents

A GROUP of North West entrepreneurs have launched what they claim is the UK’s first national discount card for independent businesses.

The Manchester-based team behind Ballooncard say it will help independent traders compete with bigger brands through high profile marketing campaigns.

The venture is being backed with a six-figure funding package from private investors.

It is being rolled out in Greater Manchester first, with launches planned for West Yorkshire and Merseyside over the next few months. The plan is to then launch in two regions a month and achieve national coverage by the end of 2013.

It is being led by Franklyn Sheldon, Martin Gilbert, Tim Borthwick and Andrew Colwell who have taken on a team of 33. They expect this to grow to 100 in the first year and 300 by 2015.

Ballooncard does not take a cut from the discounts offered, or charge consumers to use the card. Instead, businesses taking part in the promotion pay £500 a year.

Mr Sheldon said: “There are a number of small card schemes which operate on a local level. Most of these charge consumers a subscription and are run as a franchise or exclusive club. There is a proven market for these programs, however Ballooncard is unique because unlike any other scheme, it is spending heavily on driving consumers to businesses registered on the Ballooncard website.

“Over the next 12 months we are investing millions of pounds on advertising and marketing to promote local businesses. From utilising social media such Facebook and Twitter and email marketing to frequent adverting campaigns in local newspapers and magazines.

“The vast majority of independent businesses have little or no budget for advertising or marketing and rely on word-of-mouth or listings in local directories which certainly don’t spend money on promoting and driving customers to the businesses that are paying for the listing. We are giving them a level of communication they could perhaps only dream of affording themselves.”

Around 15% of annual profits will go to children’s charities. It has already struck a partnership arrangement with the NSPCC.